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MCD vs. PHM: A Head-to-Head Stock Comparison

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Here’s a clear look at MCD and PHM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolMCDPHM
Company NameMcDonald's CorporationPulteGroup, Inc.
CountryUnited StatesUnited States
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS IndustryHotels, Restaurants & LeisureHousehold Durables
Market Capitalization223.42 billion USD24.97 billion USD
ExchangeNYSENYSE
Listing DateJuly 5, 1966March 17, 1980
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of MCD and PHM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

MCD vs. PHM: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolMCDPHM
5-Day Price Return1.34%-1.56%
13-Week Price Return-2.54%22.77%
26-Week Price Return0.99%18.59%
52-Week Price Return8.88%1.09%
Month-to-Date Return4.34%12.06%
Year-to-Date Return8.00%16.20%
10-Day Avg. Volume3.35M2.01M
3-Month Avg. Volume3.50M2.04M
3-Month Volatility15.56%38.76%
Beta0.511.31

Profitability

Return on Equity (TTM)

MCD

95.13%

Hotels, Restaurants & Leisure Industry

Max
83.01%
Q3
39.51%
Median
17.38%
Q1
5.32%
Min
-45.92%

MCD’s Return on Equity of 95.13% is exceptionally high, placing it well beyond the typical range for the Hotels, Restaurants & Leisure industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

PHM

22.59%

Household Durables Industry

Max
26.99%
Q3
17.28%
Median
12.66%
Q1
7.34%
Min
0.07%

In the upper quartile for the Household Durables industry, PHM’s Return on Equity of 22.59% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

MCD vs. PHM: A comparison of their Return on Equity (TTM) against their respective Hotels, Restaurants & Leisure and Household Durables industry benchmarks.

Net Profit Margin (TTM)

MCD

32.21%

Hotels, Restaurants & Leisure Industry

Max
26.45%
Q3
14.67%
Median
8.69%
Q1
3.34%
Min
-11.30%

MCD’s Net Profit Margin of 32.21% is exceptionally high, placing it well beyond the typical range for the Hotels, Restaurants & Leisure industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

PHM

15.50%

Household Durables Industry

Max
15.50%
Q3
8.99%
Median
6.57%
Q1
4.33%
Min
-0.49%

A Net Profit Margin of 15.50% places PHM in the upper quartile for the Household Durables industry, signifying strong profitability and more effective cost management than most of its peers.

MCD vs. PHM: A comparison of their Net Profit Margin (TTM) against their respective Hotels, Restaurants & Leisure and Household Durables industry benchmarks.

Operating Profit Margin (TTM)

MCD

45.80%

Hotels, Restaurants & Leisure Industry

Max
38.76%
Q3
21.15%
Median
14.20%
Q1
6.43%
Min
-14.56%

MCD’s Operating Profit Margin of 45.80% is exceptionally high, placing it well above the typical range for the Hotels, Restaurants & Leisure industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

PHM

20.22%

Household Durables Industry

Max
20.22%
Q3
12.29%
Median
9.54%
Q1
6.30%
Min
-1.92%

An Operating Profit Margin of 20.22% places PHM in the upper quartile for the Household Durables industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

MCD vs. PHM: A comparison of their Operating Profit Margin (TTM) against their respective Hotels, Restaurants & Leisure and Household Durables industry benchmarks.

Profitability at a Glance

SymbolMCDPHM
Return on Equity (TTM)95.13%22.59%
Return on Assets (TTM)14.78%15.84%
Net Profit Margin (TTM)32.21%15.50%
Operating Profit Margin (TTM)45.80%20.22%
Gross Profit Margin (TTM)57.00%27.81%

Financial Strength

Current Ratio (MRQ)

MCD

1.30

Hotels, Restaurants & Leisure Industry

Max
2.68
Q3
1.62
Median
1.11
Q1
0.74
Min
0.19

MCD’s Current Ratio of 1.30 aligns with the median group of the Hotels, Restaurants & Leisure industry, indicating that its short-term liquidity is in line with its sector peers.

PHM

4.93

Household Durables Industry

Max
9.23
Q3
4.50
Median
2.35
Q1
1.29
Min
0.70

PHM’s Current Ratio of 4.93 is in the upper quartile for the Household Durables industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

MCD vs. PHM: A comparison of their Current Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Household Durables industry benchmarks.

Debt-to-Equity Ratio (MRQ)

MCD

40.64

Hotels, Restaurants & Leisure Industry

Max
9.88
Q3
4.54
Median
1.52
Q1
0.27
Min
0.00

With a Debt-to-Equity Ratio of 40.64, MCD operates with exceptionally high leverage compared to the Hotels, Restaurants & Leisure industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

PHM

0.17

Household Durables Industry

Max
1.84
Q3
0.90
Median
0.34
Q1
0.19
Min
0.00

Falling into the lower quartile for the Household Durables industry, PHM’s Debt-to-Equity Ratio of 0.17 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

MCD vs. PHM: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Household Durables industry benchmarks.

Interest Coverage Ratio (TTM)

MCD

9.26

Hotels, Restaurants & Leisure Industry

Max
26.88
Q3
11.95
Median
3.87
Q1
1.19
Min
-11.84

MCD’s Interest Coverage Ratio of 9.26 is positioned comfortably within the norm for the Hotels, Restaurants & Leisure industry, indicating a standard and healthy capacity to cover its interest payments.

PHM

41.50

Household Durables Industry

Max
140.40
Q3
77.14
Median
24.53
Q1
5.69
Min
-17.01

PHM’s Interest Coverage Ratio of 41.50 is positioned comfortably within the norm for the Household Durables industry, indicating a standard and healthy capacity to cover its interest payments.

MCD vs. PHM: A comparison of their Interest Coverage Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Household Durables industry benchmarks.

Financial Strength at a Glance

SymbolMCDPHM
Current Ratio (MRQ)1.304.93
Quick Ratio (MRQ)1.030.42
Debt-to-Equity Ratio (MRQ)40.640.17
Interest Coverage Ratio (TTM)9.2641.50

Growth

Revenue Growth

MCD vs. PHM: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

MCD vs. PHM: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

MCD

2.24%

Hotels, Restaurants & Leisure Industry

Max
5.88%
Q3
2.37%
Median
0.68%
Q1
0.00%
Min
0.00%

MCD’s Dividend Yield of 2.24% is consistent with its peers in the Hotels, Restaurants & Leisure industry, providing a dividend return that is standard for its sector.

PHM

0.67%

Household Durables Industry

Max
8.95%
Q3
4.19%
Median
1.88%
Q1
0.03%
Min
0.00%

PHM’s Dividend Yield of 0.67% is consistent with its peers in the Household Durables industry, providing a dividend return that is standard for its sector.

MCD vs. PHM: A comparison of their Dividend Yield (TTM) against their respective Hotels, Restaurants & Leisure and Household Durables industry benchmarks.

Dividend Payout Ratio (TTM)

MCD

59.51%

Hotels, Restaurants & Leisure Industry

Max
127.31%
Q3
56.79%
Median
19.58%
Q1
0.00%
Min
0.00%

MCD’s Dividend Payout Ratio of 59.51% is in the upper quartile for the Hotels, Restaurants & Leisure industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

PHM

6.30%

Household Durables Industry

Max
125.12%
Q3
62.43%
Median
39.18%
Q1
5.55%
Min
0.00%

PHM’s Dividend Payout Ratio of 6.30% is within the typical range for the Household Durables industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

MCD vs. PHM: A comparison of their Dividend Payout Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Household Durables industry benchmarks.

Dividend at a Glance

SymbolMCDPHM
Dividend Yield (TTM)2.24%0.67%
Dividend Payout Ratio (TTM)59.51%6.30%

Valuation

Price-to-Earnings Ratio (TTM)

MCD

26.59

Hotels, Restaurants & Leisure Industry

Max
59.44
Q3
33.98
Median
22.25
Q1
15.53
Min
7.61

MCD’s P/E Ratio of 26.59 is within the middle range for the Hotels, Restaurants & Leisure industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

PHM

9.37

Household Durables Industry

Max
29.75
Q3
18.88
Median
13.25
Q1
9.26
Min
6.32

PHM’s P/E Ratio of 9.37 is within the middle range for the Household Durables industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

MCD vs. PHM: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Household Durables industry benchmarks.

Price-to-Sales Ratio (TTM)

MCD

8.56

Hotels, Restaurants & Leisure Industry

Max
7.74
Q3
3.88
Median
2.05
Q1
1.19
Min
0.17

With a P/S Ratio of 8.56, MCD trades at a valuation that eclipses even the highest in the Hotels, Restaurants & Leisure industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

PHM

1.45

Household Durables Industry

Max
2.12
Q3
1.21
Median
0.83
Q1
0.51
Min
0.18

PHM’s P/S Ratio of 1.45 is in the upper echelon for the Household Durables industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

MCD vs. PHM: A comparison of their Price-to-Sales Ratio (TTM) against their respective Hotels, Restaurants & Leisure and Household Durables industry benchmarks.

Price-to-Book Ratio (MRQ)

MCD

160.46

Hotels, Restaurants & Leisure Industry

Max
20.90
Q3
9.78
Median
4.29
Q1
2.22
Min
0.47

At 160.46, MCD’s P/B Ratio is at an extreme premium to the Hotels, Restaurants & Leisure industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

PHM

1.68

Household Durables Industry

Max
4.21
Q3
2.29
Median
1.34
Q1
0.98
Min
0.59

PHM’s P/B Ratio of 1.68 is within the conventional range for the Household Durables industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

MCD vs. PHM: A comparison of their Price-to-Book Ratio (MRQ) against their respective Hotels, Restaurants & Leisure and Household Durables industry benchmarks.

Valuation at a Glance

SymbolMCDPHM
Price-to-Earnings Ratio (TTM)26.599.37
Price-to-Sales Ratio (TTM)8.561.45
Price-to-Book Ratio (MRQ)160.461.68
Price-to-Free Cash Flow Ratio (TTM)32.3619.50